Briefing on the new rules of Regional Headquarters of Multinational Companies

文章摘要 上海市2019年修订并施行《上海市鼓励跨国公司设立地区总部的规定》及相关若干意见,对地区总部与总部型机构予以明确定义。地区总部须为独立法人,母公司资产不低于二亿美元,注册资本不低于二百万美元;总部型机构门槛较低,母公司资产不低于一亿美元。认定由商务部门八个工作日内审查。符合条件的机构可享受开办资助、租房资助、奖励、跨境资金集中运营、自由贸易账户等资金便利,以及APEC商务旅行卡、多次入境签证、长期居留许可、永久居留优先权等出入境便利。本文为新规要点提供实务参考。

PrefaceAs the pioneer of China’s opening-up to the outside world, Shanghai, in early 2002 introduced interim regulation to encourage multinationals to set up regional headquarter in Shanghai which was then supported by some relevant policies and regulations such as Measures for the Use and Management of Special Funds for Shanghai Municipality Encouraging the Development of Regional Headquarters of Multinational Companies, etc.  In 2011, Provisions of Shanghai Municipality on Encouraging Establishment of Regional Headquarters of Multinational Companies (hereinafter referred to as “Provisions on Regional Headquarters”) was promulgated which systematically combs relevant definitions, identification criteria and procedures, as well as related preferential policies with regard to regional headquarters of multinationals. Such series of encouragement and preferential policies has made the headquarters economy gradually become an important part of Shanghai's economic development.  According to official statistics, as of the end of July 2019, Shanghai has attracted 696 regional headquarters and 450 R&D centers of multinationals, and Shanghai has always been the city with the largest number of regional headquarters and foreign R&D centers in mainland China.

The revised Provisions on Regional Headquarters was implemented on September 1 of 2019, just a few days ago.  Meanwhile, in order to better support such provisions, Shanghai Municipal Government has issued detailed rules, namely, Several Opinions of Shanghai Municipal People's Government on Promoting Development of Regional Headquarters of Multinational Companies in the Municipality(hereinafter referred to as “Several Opinions of Regional Headquarters”) which was taken effectiveness on the same day as Provisions on Regional Headquarters. This article intends to introduce the latest relevant regulations in order to provide some reference for those enterprises that plan to set up regional headquarters/head offices of multinationals in Shanghai.1.Relevant definitionsProvisions on Regional Headquarters define Regional headquarters of multinational companies and Regional head offices of multinational companies as follows:

1.1 Regional headquarters of multinational companies(hereinafter referred to as “Headquarters”) means the only head office which is established in Shanghai by a parent company registered overseas in the form of investment or authorization to perform management and service functions for enterprises within the regions of one or more countries and which shall be independent legal persons.

1.2 Regional head offices of multinational companies(hereinafter referred to as “Head offices”)  means such foreign enterprises or branches thereof which do not attain the standards for regional headquarters of multinational companies, but actually undertakes multiple functions in supporting services such as management decision-making, fund management, procurement, sale, logistics, settlement, research and development, training etc. of its parent company within the regions of one and more countries.2.QualificationsAccording to Provisions on Regional Headquarters, hope to become Headquarters or Head offices, the following conditions must be met:

2.1Hope to become Headquarters, the following conditions must be met:(1)Foreign investment enterprise and independent legal person;(2)With its parent company’s asset no less than US$200 million;(3)Authorized by the parent company to perform headquarters functions within the regions of one and more countries;(4)With registered capital no less than US$2 million.

2.2 Hope to become Head offices, the following conditions must be met: (1)Foreign investment enterprise or the branch thereof and independent legal person;(2)With its parent company’s asset no less than US$100 million;(3)Authorized by the parent company to perform headquarters functions within the regions of one and more countries;(4)With registered capital no less than US$1 million, where the applicant is a branch, the working capital allocated by its parent company shall not be less than US$1 million.

  1. Procedures for identification

According to Provisions on Regional Headquarters, the procedures for identification of Headquarters or Head offices is mainly for materials submission and review.

3.1The following materials are required to submit an application:(1)The application; (2)The power of attorney issued by the parent company;(3)Photocopy of the business license, where the regional head office is a branch, the photocopy of business license of the Shanghai branch and proof document for allocation of working capital by the parent company shall also be provided;(4) The parent company's audit report in the recent one year;(5)The photocopy of business license and registration certification of both domestic and overseas enterprises to be authorized to be managed(6)Any other materials as requested by laws, regulations and rules

3.2Review: According to Provisions on Regional Headquarters, The Municipal Commerce Commission shall complete review within 8 working days from the date of receipt of application materials and make its decision (either to approve or reject).

  1. Preferential policies

According to Provisions on Regional Headquarters, Headquarters or Head offices will enjoy the following preferential policies. (The content below shall be applied to both headquarters and head offices if there is no special note)

4.1 Funding and Rewards: (1)Regional headquarters can be entitled to funding for starting up and property lease;(2)Those regional headquarters with comprehensive trading functions and significant contributions to economic development as well as good benefits can be entitled to rewards;(3)Those Asia, Asia Pacific or larger regional headquarters matching relevant criteria can be entitled to funding including starting-up funding within the first 3 years, 30% office rental funding within the first 3 years, one-off cash reward when the annual revenue reaches certain amount.

For more details, please refer to Measures for Shanghai Municipality on Encouraging Establishment of Regional Headquarters of Multinational Companies Development of Special Funds for Use and Management.

4.2 Fund Operation and Management: (1)May establishing a unified fund management system,  and foreign exchange operations shall comply with relevant foreign exchange controlregulations;(2)Those eligible regional headquarters and regional head offices may conduct  centralized management business of cross-border capital;(3)Investment companies may establish finance companies to provide centralized finance management services for its domesticinvested enterprises;(4)Tax counseling and services will be strengthened and green channel for processing of filing of non-trade foreign currency payment contracts and tax assessment will be provided;(5)May pen a free trade account and may process cross-border Renminbi-foreign currency payments and domestic Renminbi payments based on the convertibility principle.

4.3 Simplified Exit and Entry Formalities:(1)Eligible Chinese staff may apply for APEC business travel card, and enjoy  exit convenience for their overseas business travel;(2)Expatriates who need to have multiple temporary entries may apply for multiple entry visa valid for up to one year with each stay not exceeding 180 days; expatriates who need to have temporary entry shall apply for an entry visa from the China Embassy in their countries; for urgent case, an expatriate may apply to entry-exit  for a port visa;(3)Expatriates who need to stay in Shanghai for long time may apply for a Foreigner Residence Permit with a validity period of three to five years;(4)Senior executives such as legal representatives may be given priority in applying for a "Foreigner Permanent Residence Permit";(5)Shanghai Customs will provide green channel to go through health certificate for legal representatives and those senior executives with relation to headquarters’ functions.

4.4 Introduction of Talents: (1)The human resources and social security authorities and technology administration shall facilitate introduction of talents by regional headquarters and regional head offices to work in Shanghai and to apply for the relevant permits and certificates;(2)Those eligible domestic talents brought in may apply for Shanghai Hukou;(3)Overseas-educated persons with foreign nationality holding a university degree and above or equipped with special skills, overseas-educated persons and other professionals with foreign permanent residence who hold Chinese passports but have no Chinese Hukou, as well as professional from Hong Kong , Macau and Taiwan,  may apply for "Shanghai Residence Permit" (B Pass) . The aforesaid persons' spouse and children below 18 years or attending high school may apply for dependent pass;(4)The district where talents are located will provide convenience for the introduced talents in all respects such as school enrolment of children, medical insurance, application for talents' apartment etc.

4.5 Trade Facilitation: (1)For eligible regional headquarters and regional head offices, the Customs shall innovate regulatory system and model to enhance Customs clearance efficiency for their imports and exports;(2)Authorities such as Customs and foreign exchange  shall adopt regulatory measures to facilitate logistics consolidation by distribution centers established by regional headquarters and regional head offices.5.Supporting RulesSeveral Opinions of Regional Headquarters have refined and supplemented Provisions of Regional Headquarters as follows:

5.1 Intensifying encouragement of cluster effect of regional headquarters of multinational companies.

5.2Improving investment convenience for multinational companies.

5.3Improving fund use liberty and convenience of multinational companies. (Concretize Fund Operation and Management policy in Provisions of Regional Headquarters,for example ,allow them to centrally operate domestic and overseas funds of member enterprises under the multinational company's cross-border funds central operation and management business; Facilitate regional headquarters foreign Exchange Purchase and Settlement; Remove the restriction pertaining to the number of cooperating banks and domestic main accounts for cross-border fund pool business.)

5.4Improving trade and logistics convenience for multinational companies. (Concretize Trade Facilitation policy in Provisions of Regional Headquarters, for example; For chain enterprises implement the pilot scheme of "one permit multiple outlets" in the Municipality; Support launch of tariff guarantee insurance pilot scheme)

5.5Promoting R&D convenience for multinational companies.

5.6Strengthening complementary protection for headquarter function of multinational companies.ConclusionIn the context of global economic slowdown, many multinationals are proactively seeking change in response to the economic recessions. From the perspective of cost reduction and efficiency improvement, it will be a smart choice to set up regional headquarters/head offices in areas with more preferential policies.  As an oriental pearl which has early been among one of the cosmopolitan cities, Shanghai has unique advantages in attracting foreign investment. Coupled with the above-mentioned many preferential policies, we firmly believe that more and more multinationals will move into Shanghai.

Recently we have provided professional legal advice to a number of multinationals on setting up regional headquarters/head offices in Shanghai. Those multinationals which intend to set up regional headquarters/head offices may us to acquire professional legal supports.

杨春宝一级律师简介

杨春宝一级律师,大成上海高级合伙人、资本市场部主任、国资基金研究中心主任,大成中国区私募基金专业带头人、科技与文化法律研究中心联合牵头人。执业30余年,长期从事私募基金、投融资、并购重组法律服务,尤其对对赌研究颇深且具有非常丰富的实战经验,并专注于金融机构股权投资业务。2004年起多次入选The Legal 500"私募基金"和"公司与商业"等境内外各类律师榜单,代理的中国法院首例适用外国法律审理外国公司的董事损害小股东权益纠纷案入选上海高院发布的《上海法院域外法查明典型案例》和威科先行"要案头条"。入选上海涉外法律人才库、上海市司法局鼎新法治人才库、上海国有企业改制法律顾问团,具有上市公司独立董事任职资格,系多家知名高校的兼职教授或兼职研究生导师及上海市商务委跨国经营人才培训班讲师。出版《私募股权投资基金风险防控操作实务》等16本投融资法律专著。了解更多

常见法律问题

跨国公司地区总部与总部型机构有何区别?

1. 法律概念与规则解释:根据上海2019年施行的《上海市鼓励跨国公司设立地区总部的规定》,地区总部是指由境外母公司以投资或授权形式设立,对一国以上区域内的企业履行管理和服务职能的唯一总机构,且须为独立法人。总部型机构则指未达到地区总部认定标准,但实际承担母公司多项支持职能的外国企业或其分支机构,如管理决策、资金管理、采购销售、物流结算、研发培训等。两者核心区别在于是否达到总部标准及法人地位要求,总部必须是独立法人,总部型机构可以是分支机构。n2. 案件事实与实务场景引用:上述规定明确,地区总部须同时满足母公司资产不低于二亿美元、注册资本不低于二百万美元等条件,而总部型机构门槛相对较低,母公司资产不低于一亿美元、注册资本不低于一百万美元,若为分支机构则营运资金不低于一百万美元。从上海实践看,截至2019年7月底已累计吸引696家地区总部和450家研发中心,修订后的规定将更多企业纳入总部经济支持范围,使尚未达到总部标准但承担实质管理职能的机构也能获得政策认可。n3. 实务指引与风险提示:企业在申请前应准确判断自身属于哪类主体,避免因标准误判导致申报受阻。若母公司资产或注册资本暂时不足,可先申请总部型机构,待条件成熟后再升级为总部。需注意地区总部必须是唯一总机构,若已在其他城市设立总部则不符合条件;同时授权范围应覆盖一国以上区域,授权文件需规范,否则可能影响认定。

申请认定需满足哪些资质条件?

1. 法律概念与规则解释:依据上海市关于鼓励跨国公司设立地区总部的最新规定,申请认定为地区总部或总部型机构需分别满足不同资质。地区总部要求申请主体为外商投资企业且具有独立法人资格,母公司资产总额不低于二亿美元,经母公司授权管理一国以上区域内的总部职能,且注册资本不低于二百万美元。总部型机构则相对宽松,申请主体可以是外商投资企业或其分支机构,母公司资产不低于一亿美元,注册资本或营运资金不低于一百万美元。n2. 案件事实与实务场景引用:实践中,申请需提交申请书、母公司授权书、营业执照复印件、母公司最近一年审计报告、拟被管理企业的注册证明等材料。若申请主体为分支机构,还需提供上海分支机构的营业执照及母公司划拨营运资金的证明。上海商务部门自收到申请材料之日起八个工作日内完成审查并作出决定。此次修订将注册资本门槛与此前政策保持一致,同时通过配套《若干意见》强化支持力度。n3. 实务指引与风险提示:企业应提前核对母公司审计报告中的数据是否满足资产规模要求,注册资本是否已实缴到位。授权书需明确授权范围涵盖一国以上区域,若授权区域仅为中国大陆,则不符合《规定》中关于多国区域的要求。建议企业整理完整的股权架构图和管理职能说明,以便审查时清晰展示总部功能。对于分支机构申请者,营运资金划拨凭证务必留存备查,避免因材料缺漏延长审查周期。

上海地区总部可享有哪些资金与出入境便利?

1. 法律概念与规则解释:上海市对认定的跨国公司地区总部和总部型机构提供多项优惠政策。资金方面,地区总部可获得开办资助和租房资助,具有综合交易功能且对经济发展贡献突出、效益良好的可获得奖励;符合亚太区或更大区域总部条件的,可在最初三年享受开办资助、百分之三十的办公用房租金资助,以及年度营业收入达标后的一次性现金奖励。资金运作方面,可建立统一资金管理系统,开展跨境资金集中运营,投资性公司可设立财务公司,并可开立自由贸易账户,办理跨境人民币或外币支付。n2. 案件事实与实务场景引用:出入境便利是重要政策亮点。符合条件的中国籍员工可申请APEC商务旅行卡,外籍人员可申请有效期最长一年、每次停留不超过一百八十天的多次入境签证,紧急情况下可申请口岸签证。需长期留驻的可申请三至五年的外国人居留许可,法定代表人等高管的永久居留申请可获优先办理。上海海关为法定代表人及相关高管办理健康证明提供绿色通道。n3. 实务指引与风险提示:企业应关注各项政策的具体适用对象和申请程序,例如开办资助和租房资助需向商务部门提交申请并符合专项资金管理办法,奖励额度取决于年度营业收入等指标。资金集中运营需遵守外汇管理规定,自由贸易账户的使用应基于真实交易背景。出入境便利多面向高级管理人员,普通员工需按一般程序办理。建议企业指定专人对接政策执行部门,动态跟踪申请条件变化,确保及时享受政策红利并合规运营。

以上内容仅供参考,不构成法律意见。如需专业法律服务,请联系杨春宝一级律师:chambers.yang@dentons.cn

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